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Taxation in Liechtenstein

Reasonable and flexible, Liechtenstein's taxation system entails the state's benevolent business and investment climate. The Principality of Liechtenstein is a very small country that acquired its financial centre title owing to state policy, which provides both resident and non-resident companies with diverse possibilities to conduct profitable business. Liechtenstein is often referred to as a tax haven due to having almost the lowest taxes in Europe (except for Andorra, the only country with lower tax rates than in Liechtenstein)

Liechtenstein taxation system rates

Liechtenstein taxation system rates. Taxation in Liechtenstein’s integrated international tax system. Goldblum and Partners’ consultation on taxation in Liechtenstein
Liechtenstein taxation system became more flexible; the rules of tax levitation were simplified for convenience's sake.
Taxation in Liechtenstein is governed by Tax Act 2010. The law was put in force in 2011 and manifold amendments were adopted. Reforms undertaken by Liechtenstein government were meant to build up a more favourable image for inward investment and enable a friendlier business environment. The improved taxation system has a reputation for its reasonableness, logic and flexibility. All the taxation regulations were made compatible with the European Union legislation as well. Liechtenstein taxation system became more flexible; the rules of tax levitation were simplified for convenience's sake. Instead of a regular progressive taxation scale, the country adopted a seven bracket schedule.

Liechtenstein's taxation system includes the following rates:

  • Profit tax's moderate rate is 12,5%, while its maximum is 20%
  • Individual income tax in Liechtenstein is 1.2%. Together with 'super tax' (additional income tax), the rate increases to 17.8%. Liechtenstein's welfare program additionally levies on all workforces an extra income-duty rate of 4.3%. Freelancers and the self-employed are to pay a tax of 11% at maximum
  • Wealth tax consists of 0.06% and is paid annually
Instead of a regular progressive taxation scale, the country adopted a seven bracket schedule.

Taxation in Liechtenstein's integrated international tax system

Since Liechtenstein's taxation system complies with all European Union regulations, and keeping in mind that the state belongs to the European Economic Area and the European Free Trade Association, we can assume that paying taxes in Liechtenstein is a wise step for holding companies with international capital. With the help of professional consultants, a company can make its international financing truly tax-efficient within the framework of the Liechtenstein taxation system. However flexible and transparent taxation in Liechtenstein is, hiring a professional agency specialising in international tax law is highly recommended. Experience in dispute resolution is essential, and in settlements over issues with tax authorities as well.

Goldblum and Partners' consultation on taxation in Liechtenstein

Goldblum and Partners is a solicitors' society that renders legal aid and assistance for international companies and has been in operation since 2006. Our panel of experts is ready to provide you with thorough information on Liechtenstein's taxation system and international tax structuring. At Goldblum and Partners we value our company on its flexibility and continuing readiness to cooperate with our clients and business partners. Goldblum and Partners consults its clients on taxation in Liechtenstein, Austria, Switzerland, Germany, Ukraine and other European states. For companies willing to outsource their taxation and accounting functions to a professional agency, we offer a range of services that will satisfy the needs of any business.
We will show you the loopholes and will get you acquainted with all the nuances of taxation in Liechtenstein.

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